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Read the scenario. A local foods market recently accepted a cookie baker to sell cookies at their weekend market.
She set her cookie prices at $2 per cookie and $10 for a half dozen. She sold 6 dozen cookies her first weekend.
Two weeks later, a new baker set up shop, selling cookies, pastries, and pies. He set his cookie price at $1.75 per
cookie and $10 for a half dozen. He sold 4 dozen cookies his first weekend. The next weekend, the first cookie
baker changed her prices to $1.50 per cookie and $8 for a half dozen. She sold 8 dozen cookies that weekend. In
this scenario, competition among which group determined the price of the product?
The owners of the food market
The buyers
The sellers
The government



Answer :

GinnyAnswer
To determine which group influenced the price of the product in the given scenario, let's analyze the events described:

1. Initially, a cookie baker set her prices at [tex]$2 per cookie and $[/tex]10 for a half dozen and sold 6 dozen cookies.
2. Two weeks later, a new baker arrived and set his prices at [tex]$1.75 per cookie and $[/tex]10 for a half dozen, selling 4 dozen cookies.
3. Subsequently, the first baker responded by lowering her prices to [tex]$1.50 per cookie and $[/tex]8 for a half dozen and sold 8 dozen cookies.

From this:
- The first and second bakers adjusted their prices, likely due to the presence of competition.
- The price changes reflect a competitive environment where sellers are attempting to attract more customers by offering lower prices.

Key Insight:
- The sellers (the bakers) specifically adjusted their prices in response to each other's pricing strategies. This indicates that their behavior influenced the price adjustments.

Conclusion:
- The price of the cookies was determined by the competition among the sellers.

Thus, the group that determined the price of the product in this scenario was the sellers.

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